good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the latest case of ebola detected in new york city, a doctor recently back from africa is now in violation after testing positive for the deadly disease. that took some wind out of the sails of the ramally on wall street. it's still gained -- it still closed up with a huge gain of 216 points. but that definitely took away some of the momentum late in the session. >> you hear 103 and you just got back from -- >> treating patients in western africa.

>> this wasn't much doubt. >> take a look at future this morning. you see red arrows. at this point, dow futures are down, but only by about 9 points. nasdaq off by 10 points. in some of the early trading in europe, again, some modest declines. the cac in france down by 0.4 had%. the dax and the ftse down by closer to 0.2%. >> let's get over to meg now who has been crisscrossing the country from dallas to washington and now in new york city. she's standing by outside bellevue hospital. good morning to you, me meg. >> good morning, andrew. now closer to home, the patient dr. craig spencer is 33. he was working and we know about the time line when he came back. he arrived here on the 17th having gone to europe. now, we know that he didn't have any symptoms. i wasn't until tuesday that he

started to feel sluggish or tired and not until yesterday morning that he kaem down with a fever which health officials emphasize is important because ebola is not contagious if you're not symptomatic with things like fever. >> de blasio is emphasizing the situation is ready. >> we have been waiting for months for a threat posed by ebola. we have clear and strong protocols which are being scrupulously followed and were followed in this instance. >> they have identified four peop people. >> health officials are emphasizing there's very low risk of spreading it to the general population here in new york. again, it's important to emphasize we remember thomas duncan in dallas. out a lot more that dr. spencer

was. none of his contact from the general population came down with ebola. it was health care workers. >> i happen you're not contagious until you have a temperature. but every person reacts differently. the ideal by 11:00 the new york morning, he had a temperature of 103.5 makes you wonder about the nice before when he was out. >> that's the question everybody is asking. health officials say they know it's when you have a fever that only is communicable. everyone is wonder background the spectrum.

he woke up with a fever. it wasn't when he was out on wednesday that he felt that way. everybody is emphasizing that he's feeling tired, feeling sluggish. i apologize for the noise behind us. however, they're being very careful. they say he has his metro card. they're emphasizes there's little concern about spreading this to the community here. >> i don't know if you saw that, there's reports that he took uber. >> they said the driver had no contact with him and that the driver is going to continue to drive, they're not quarentining the car or doing something like that. >> have you heard more on that? >> uber said they knew it was one of their drivers, but the city has been very careful to say they don't think the person who is at high risk didn't have close contact at all.

>> when people are in contact with someone with ebola, this gentleman was in full contact 10 or 11 days ago with people in west africa fully treating him in the -- you know, the -- and then is not in quarentine at all when he comes back. he's totally out on the subway and in the bowling alley -- >> just like dr. nancy snyderman when she came back. >> doesn't he have a much better -- >> i don't understand why there isn't a policy, they get credit for being compassionate care givers, but it seems like a logical conclusion that you would come back and put yourself in quarentine. >> the argument is that if you're not symptomatic, you're not going to be contagious. what doctors without borders is

expected to do is be monitored for 21 days, take their temperature. and that's what dr. spencer was doing. also, he didn't go back to work. doctors without borders has a policy that for 21 days when you come back to the country you should fought go to work. not just because of potential exposure, but because you could be tired from traveling, you could come down with other things. you know, the risk of having ebola. >> meg, thank you. >> and paul allen, there are going to be some strange segues today, but this is a related story. paul allen has ramped up his commitment to fight ebola in a big way. the billionaire microsoft co-founder is donating $100 million. he's partnering with the state department and the w.h.o. to create medivac containment units

that will be used to evacuate medical professionals from west africa. he's teaming up to provide training and christmastime for medical workers. let's talk more about this latest case and how it's being handle. former deputy hhs secretary tevy troy joins us this morning. thank you for being here this morning. i'd like to talk a little bit about what you think, with the idea that ebola is now in new york city. we knew other cases would take place. how prepared do you think we are? >> obviously, new york is the most likely city where ebola would have appeared, given how much traffic goes through new york. and it sounds like new york is mostly prepared. the hospital that mr. spencer is at or dr. spencer is at is one of the hospitals that is ready to deal with this. he was self-monitoring. he does live that hipster youthful lifestyle.

he was at a bowling alley, he was on the subway and took uber. you wonder about what happened in that period. unlike the dallas patient, he went straight in there and he -- in a protection suit and they're taking care of him appropriately now. >> he told the hospital he had been at a hospital in west africa. they didn't pick up on that. if you've been in contact with ebola patients, wouldn't it make sense that if you come back to the united states, you self-quarantine? >> yeah. in fact, the initial reports i read sounded like he was self-quarantining. the dallas station did show up there, but then he went out into the broader population. again, fought his fault. but he was out when he was contagious and symptomatic. >> is there some unwritten rule that he was supposed to

self-isolate? >> i would say the initial reports seem to indicate that he was doing some kind of self-isolation. but apparently he was not. he was just doing self-monitoring. >> doctors without boarders has the right policy saying doctors don't go back to work. but i don't know how you tell someone to completely self-isolate for 21 days. >> i completely admire these people who are covering this. but the idea that you bring him back and expose other people to it, including your loved ones, seems outrageous. >> yeah. i think that's a really good point. and i think that i -- i

certainly green agree that we have to be compassionate about the people who are there and appreciative of what they are doing. i do think they need to be more aggressive about not getting thmz oat there, going on the gutters, bowling alley or uber. >> what is the cost of treating somebody like this? you look at the apparatus, even when there's the larger cost, the fear cost from an economic perspective, but just the physical cost. you saw the apparatus go through new york city. they have to track everybody, there's hospitals on stand by, people are flying in from the cdc. do you have any sense of what the numbers look like? and this would be for one individual. that's what i'm trying to understand the math. if it were to become a bigger situation. >> i don't know the exact numbers for each patient. it's labor intensive, the patient in dallas supposedly had about 40 health care workers,

which is a lot. you wonder if you have multiple cases, to what extent does this begin to tax the health care system, the protective equipment, the number of health care workers monitoring the person. >> ultimately, you think this is a situation that would be repeated in different cities? how long before we actually get our hands around this and think about some sort of solution? >> this is a situation that what is the situation? the duncan situation was one thing where he spread the infection to two other people. how many people you spread the infection to, and he spread it to two. how many people will dr. spencer spread it to? if we keep that number on zero, if we could limit the spread, that would be a good thing.

we're going to check on the markets and zero would be better than two. but two was pretty darn good and that's why the futures are down a little bit today. if this were patient zero, then if a nurse had -- if we hadn't been through that already two weeks ago where you had the family members and then you had for a while the -- a lot of good stuff happen since patient zero, including nigeria and senegal and the family members and everything else. as a result, we gave some back yesterday when it was 103 temperature but, you know, doctors without borders back ten days. >> if you pass bodily fluids and you don't have the symptoms at the time, does the bodily fluid part -- >> that i'm confused about. you can still transmit it for

six or seven weeks after you're clear. >> we're industrial trying to figure out when you can -- why when you're asymptomatic can't you do the blood test for ebola and is when you are -- >> and the idea that there's a perfect tipping point where you can from not being contagious to being contagious. it's not like a flipped switch. that's what i think is hard to pin down. >> we will hear people politicalize this latest. we're going to hear that. let's see where the future is this morning. down 15 points. we'll see how that progresses this morning. crude rebounded sharply yesterday. stocks are moving in the same direction as crude right now.

sort of an indicator of how we feel about global growth. there's the ten-year, 2.24. yield has moved over. higher also for equityies. 1.26 now on the euro. 108 on the yen. and that is at 108. also, take a quick look at gold. goal has made its way back to 32, right in the middle of its one-year trading range. coming up next, a look inside amazon's big miss and not -- anyway, it's a joke, and why the company is sale saying sales for the holiday season will be weaker than wall street is expecting. the stock is getting crushed. and later, who says microsoft is not doing well any more? they beat on the top and bottom line. the stock is now up close to 25% this year. is hold new again for investors? we're going to find out when

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the pharmaceutical giant pfizer says its board has authorized another $1 1 billion to its share purchase program and that is in addition to the 1.3 billion that's still remaining. shares of pfizer up 70 cents this morning. but, you know, not really near a high. very narrow trading range for the entire year. former jcpenney ceo and apple retail chief ron johnson has a new start-up. johnson said "the wall street journal" has raised $30 million including a buy in for horwitz. a slam on the top and bottom

line for amazon has the stock under pressure. for the year, the stock down now around 30%. the question is has wall street finally grown tired of the well, we'll grow a profit later strategy? jeff besos is here. scott, help us understand this. at what point do we just say, you know, the numbers don't matter? >> it's really the case of enough is enough over the last few years. the margins begin to show signs of life, spending that just hasn't happened. >> so i guess the question becomes is do you want them to stop spending? >> there's a fine line. amazon has a history and culture of innovation. need to spend to do that.

they're rolling out prime, rolling out digital media. but there seems to be this disconnect between the ability to drive operating profit and drive cash flow and where the spend sg being directed. right now, over the last few quarters, we've seen some misdirected spending with the company having to take a write-down in the most recent quarter for inventory. >> what do you think similar to the grocery business that they're getting into and these other things? does that make sense to you? do you want them spending on things like that? >> you know, that in particular is a tough business. clearly, they're focused on a rollout. that's fine. they're not going into 50 markets all at once and given their frut, i think it makes sense for them to attempt it. you'll be happy seeing a lot of traction in that business. so i think it's a tough go.

but it's another area where they the infrastructure, they've become more of a logistics company rather than just a retailer.. they're trying to figure out ways not just of what they built, but the customer data that they have. >> amazon's cfo once said effectively, you know, every single quarter we don't always care did we need one i know if we meet your expectations. the question is when do you think they are going to try to put up some of those numbers just to prove everybody wrong? >> keep in mind, he is retiring in a few quarters. as we look at the expense trend, they keep showing signs of slowing. they show another quarter or two

of slowdown. i think we should begin to see the margin improvement for them as part of the revenue update take. international has been one of the bigger drags. currency has moved against them. they've had a few head whippeds in terms of their rollout. >> now there's speculation they may be getting in two. >> i think that's on a limited basis. essentially, using that storefront as a showcase and as a distribution hub. i wouldn't be surprised to see them do that in some of the more concentrated urban areas, but i don't think it's going to be a broader strategy for them. it just doesn't fit with what they've tried to do on the delivery of the structure. >> and how do you measure the webb service piece of their

business? >> that is difficult. as most people know, amazon sa black box. they don't provide a lot of detail. clearly, they have the technological background to offer services to a broad hoet of clients. the high margin business is one that continues to grow nicely. we have running even higher growth rates in previous quarters to force some price increases. i think that is something that we will continue to see from them. the infrastructure makes the company -- here, they have a similar structure. >> model out for us, what does this stock look like in the next 12 months and how do you even get there, whatever your number is? >> right now, the free cash flow is so much suspect given what we've seen on the expense side of the equation. we took our target price down overnight to $296. so a little bit above where the

stock was trading aftermarket. >> that -- we had been at 350. our concern going into the quarter was currency was going to be an issue and expenses for guide yaps was going to be an issue. we got all three in the report last night. looking forward, the key, again, going back to your earlier question is whether or not the company can continue to make that turn on the margin front. but that turn is really what will drive valuation. and if we don't get that, they're probably looking at further down side. >> how finish is it to come up with a price target on a company like that? >> we've always relied on a discounted cash flow model for amazon. over the last nine years, it's

pretty well. given that some quarters work, some quarters don't, investments are long-term in nature it's captured that way. but with the spending free that we've had, really, since 2010, it's become more and more challenging to justify some of the inputs and at the same time, if you look on a relative valuation basis, a lot of the multiples continue to be well above the peers while growth is slowing. >> we're going to leave it there. scott, thank you for joining us this morning. >> thank you. up next, a wave of strong earnings getting the bulls all charged up. the dow, nasdaq and s&p set to break a four-year losing streit streak. how comfortable should investors feel? stick around to find out. net flex may have more offerings along the way. right now as we head to a break, take a look at yesterday's big winners and losers.

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good morning. welcome back to "squawk box." i'm joe kernen along with becky quick and andrew ross sorkin. a new york city doctor tested positive for ebola. he had been treating patients in africa of ebola. the news late yesterday that he

is being tested for ebola did take some wind out of the sails of the markets rally. it was up about 300, ended up still over 200 this morning. sort of a wait and see attitude with the futures. the last i looked, they were down about 15. automaker ford and procter & gamble are among the companies set to issue earnings this morning. we'll get the latest numbers from bristol meyers and johnson and johnson has been found not liable in a case involve something allegedly defective im plants. the company maintains that injuries suffered by patients were the result of improper positioning. this was the first of about 6600 cases involving those implants to go to trial. we were just talking about the s&p 500 and the other markets. the nasdaq, both of these on track for their best week since january 2013.

and it's despite ebola fears here and around the globe. barbara reinhart at credit suisse and david joy, chief market at ameriprize financial. two weeks ago, we talked a lot about ebola. this time around, i don't know what kind of assumption is to make. and it's just conjecture. let's focus on earnings. that is what has given us this great week, barbara. it has been better than expected. do you expect that to continue in terms of results? >> we do. there are a couple of things for the economy that is propelling it forward. one has been this decline in gasoline prices over the past three months. that can at like an $80 billion lift to consumers over the course of the next 12 months and it's right in front of the holiday selling season, which means it will be all the more powerful. >> it's hard to stay away from

the other because if you look at the airline stocks, they go down about 20%. they come right back you. and they went down in the face of lower oil prices. so that was all about ebola fears and we'll see whether it depends on the next few days and what happens. we have to monitor things like that. >> ebola is one of the most scary things. clearly, the countries where the disease is starting and the most vicious have the greatest stalls in gdp growth. 0.7% off of u.s. gdp. it depends how the disease allows and take it in the context of how it's affecting economic growth. >> i've used the term, low probability, high impact. >> oh, yeah. >> it's not a new term, but it's new for me.

boy, i've used it a lot, david. that's how you talk about ebola. low probability, that is a high impact if something were to get out of hand. but low probability is the operative term. i can't put a number on it, but probably less than 0.1% of something really getting out of control, isn't it? >> yeah, i think that's right. it's sort of in the wings. it's affecting sentiment. of course, in the retail space, as you would imagine. when we talk to some of our retail clients, that's something they want to talk about, really, right off the top. but, you know, if you back that out, the fundamentals are pretty good in the u.s. in addition to lower oil prices. a lot of strength in the transports, part of it is an entity related but the railroads have been very strong. you're seeing great earnings out of caterpillar. great strength in technology on the business side with cloud computing expanding.

will r but the other thing i would add is the floor under this market in the last couple of weeks, we're assuming comments from the central banks. you had the ecb starting to buy covered bonds, now they're talking about buying corporate bonds. you had the federal reserve at least james bullard saying, you know, maybe we extend qe. at the very least, that sent a message that you're not going to start fightening aggressively. >> the tabloid wrote about the fed's plunge protection program again. implying there is a fed put still in place. >> i expect it to come to an end. but how they talk about that transition, which presumably starts to come down at some point to higher interest rates. that is going to probably be a

lot short-term for the markets. >> and they're going to do it in a two-step role. they're ending qe, but then they're going to use the language to say we're not going to raise rates anytime soon. the issue with quantity taifb easing. >> do you think it's going to be bad news? >> it's difficult to say at this point. i think you have to watch the data points. we've kind of been waiting for it. you just have to say what the results actually say. but i think the ecb is willing to support the banks in terms of any capital raising that they

need to do. clearly, they want to make sure the eurozone does not sit into deflation at the central point of their mandate. >> if you pay close attention to the outlook from a lot of these companies and should we put any faith or confident that they have any idea about the next few months, given all the uncertainties that we're facing right now? >> i think big data gives lots of companies data points to take a look at. so i put the guidance at full face value. >> really? >> yeah, i do. i think there's enough data points that you can get if you're a company treasurerer or cfo on realtime data sales for webb traffic. >> you don't think big data is giving them an artificial confidence about the numbers? >> no. >> given the shifts and how quickly the shifts can happen? >> the shifts can happen quickly. but i can tell you within even an outbreak of ebola -- >> is that any big data numbers? >> well, no, but it doesn't in the necessarily stop you from online shopping at that point. >> amazon missed royally

yesterday. >> yes, they did. >> so either all the analysts are wrong, amazon to some degree was wrong. in terms of what amazon is telling the market. they have more numbers and more data essentially than most companies. again, i'm going back to why are you confident in big daetd? >> because i think companies are figuring out and data scientists are able to decipher kind of what they're seeing from big data patterns. it's not an exact science just yesterday, but it's more information than the company would have had five years ago. >> how do you explain an ibm or coke or machicdone al's. >> ta make it low enough. the one thing you want to watch out of this earnings season has

been top line sales growth. if you see top line sales growth continue to do well in the second quarter going into the third quarter, it's a farther disappointment in the margin. >> it's funny, companies on a roll like apple, they down play the outlook. companies that are not a roll, they seem to make it look better. >> ibm, they said specifically they thought it was ibm specific. >> yeah. she told us after it blew up. >> they didn't try and blame the -- >> she didn't say anything over the last six months. >> and i imagine we're going to talk to him about buybacks. broadly speaking. >> did you forget about her completely? >> you have a feeling about buybacks. >> i think buybacks have their place. in the pecking order, once you -- your capital needs are

met and your dividend needs are met, if you can't find a place to invest that month and get a return on equities, by all means, give it back to shareholders. >> would you like them just to cut a check? >> i'd rather have a check, to tell you the truth. the one thing i don't like about buybacks is the strategy where you borrow money simply to buy back stock. i think that's sort of self-defeating. i understand rates are low, but at the same time, i'd rather keep the balance sheet stronger than that. i think buybacks have their place. there's nothing better to do with the money, but only if you've exhausted the possibility for a decent return on equity. with the decline that you've had in the equity markets, there may be pockets. >> do you think the lack of buybacks with earnings, they can't buy, right? >> yeah. >> so would you ascribe whatever volatility we've had or some

sense of volatility and some sense of the drop off to -- what percentage of the market do you think were corporate buybacks? >> well, the decline that we saw from the middle of september to the middle of october was really about three quarter technical, one quarter fundamental. 0.75 technical is investor conplace endsy and a buy back period. you've got valuations for some portion of the markets that have been beaten down by energy, going into the end of the year. seasonally, november and december sees the best back to back month gains and the biggest drops in volatility throughout the year. >> you're going to have the last word. you're here. >> thank you. >> david stayed up in boston. you see, that's what happens, david. but anyway, we appreciate it. enjoy. thanks for joining us. >> thank you. >> thank you. >> on twitter, asking how much ebola is going to cost is a disgusting question. >> this is called cnbc. >> we're in the business of

doing disgusting things every day. >> these are your -- >> these are your people. these are the people that follow you. and anything that is untoward and disgusting as money and profits, you're going to get those. >> but you attract those people. think about that. >> thank you, joseph. >> you're welcome. coming up, microsoft pushes into the clouds and paying dividend sales with that segment of the company double westbound is this a sign moving away from traditional software is the way to go? as we head to this break, take a look at what's happening in european markets right now with red arrows across the major averages. "squawk box" returns in just a moment.

sglooe welcome back, everybody. we're seeing modest declierchbs th declines this morning. the nasdaq down by 11.5. netflix announcing three new original series. a newseries called f. is for family, bloodline, and another about a mysterious disease that has killed everyone above the age of 21. you can see at this point, they're back around 382. not a massive increase, but off the lowest levels. microsoft beating levels, stocks rooid rising on that news. it's up nearly 37% over the past

year. joining us now on set is ed mcguire, director and senior analyst. we will stick with that. and you came here with your microsoft phone. nokia. >> i got a nokia phone. i had problems with the others. >> what i don't understand is the company gets a new ceo and the stock goes on a tear. but has the business gone on a tear or has -- >> you're seeing the benefit of a lot of years of planning. i'm not going to say steve ballmer deserves the credit. but the company deserves the credit for sowing the seeds for success. but this whole idea of making the transition from being a product to a production services related company took a lot of planning. they caught a lot of flack over the years for running, booel being at a loss and now what we're seeing is that customers

are adopting office 365 and azure dynamics, some of their other cloud services and you can see it in the numbers. >> the multiple, 30 or 25 and what is the multiple now? >> has the multiple expanded? >> sure. the results have gone up, but not as much as the multiple. >> the results have gone up -- >> they haven't gone up at all? >> no, they have gone up. >> it didn't go from 10 to 20 times earnings? >> no, it went from high single digits to low teens. transparency helps a lot, too. last year with the new cfo, we got new reporting segments. all of a sudden, investors could look into the numbers and see what's driving this transition. you can see the traditional licenses are inching along, just barely growing a lot like the other software companies.

but their cloud business has grown 100%. >> if i were ballmer, whether i slept well at night was what kind of shape i left microsoft in, i would be sleeping every night like a baby. revenues probably went up a thousand percent. >> they tripled. >> my other question, though, like this phone deal, he did do this phone deal before he left. do you want them in the phone business? >> it was a -- it was a bad choice. they could have let nokia just die or they could have bought it. i think they had to do that for the survival of the platform. what's interesting about windows 10 is they're looking to unify all their operating systems. this may be a game changer down the road because if you're a developer, you can write an applicati application for a tablet, for a smartphone that will run all three. >> they're in the consumer game,

obviously. do you think they ever become a done nant force again in the consumer business? >> in the consumer phone business, i think that shifted. >> phone tablets, pc. >> well, i think the days of 95% market shares are long past us, but they're humble. they've been an underdog for a while. so they're competing on the merits. so office 365 had 7 million new subscribers this quarter. people see value in it. they realize they have to compete in the merits of an open environment. they're supporting android. you can get office on your ipad. they know that it's -- you can't play the mono po lous game any more. >> not too many $372 billion companies around, are there? >> $371 billion. exxon. let me ask you, last week, nadella was interviewed by jon fortt here at cnbc. he said there are three big companies that are real players and cloud. he listed microsoft, amazon and

google. he didn't mention companies like an hp or oracle or an ibm. is that a fair assessment, are they the three big players and is it going to be profitable? >> yes and yes. so servers and storage as a service -- >> amazon is giving it away though. >> i think you have to throw sales force.com in there. there are some smaller companies too. but hp is a slow mover. ibm was trying to straddle a number of worlds and keep some of their lucrative businesses. there's a couple of other things going on out there. there's open source software. satya nadella said they are run on linix. so this is a very different -- it's surprising that that mirrors the general share of workloads in the market overall. but google has the scale, amazon has the scale, and microsoft has

the cloud scale. when you start to play a race to the bottom which is what amazon has done, it may be coming back to bite them after this quarter. microsoft is focusing on higher value applications. like office, like dynamics. that's what sales force.com does too. when you buy applications, that doesn't get commoditized. >> one a 371. >> 361 is microsoft. i have it on my screen. >> so they're in based on the close. every tick. >> where's apple and -- >> i think that's tied for third, isn't it? apple at 614. exxon at 400 and change. then i think microsoft and google. many times in the past people have come in and said i would go short or long.

and now that's -- >> walmart and ge are there. >> we appreciate it. coming up, a medical breakthrough. giving heart patients a second chance. stay tuned. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are. and start working on your next big idea. ♪ ♪ introducing synchrony financial. bringing new meaning to the word, partnership. banking. loyalty. analytics. synchrony financial. engage with us.

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welcome back to "squawk box" right here on cnbc, first in business worldwide. i'm andrew ross sorkin along

with joe kernen and becky quick. our top story, ebola in new york city. a doctor that treated those with the disease in western africa has tested positive after showing symptoms on thursday morning. he's now in isolation at bellevue hospital. we'll have a live report in just a few moments. in the meantime, the news putting the brakes on the futures. the dow would open down about 25 points. nasdaq down 14 points. and the s&p 500 down about five. >> ford rolling out quarterly results. let's get to phil lebeau who has those numbers. >> we knew it was going to be a bit of a messy quarter. that's what we get from ford. but ford beat the street earning 24 cents a share. that's a nickel better than analysts were expecting. overall ford earning $1.2 billion. that's a drop of $1.4 billion from the same quarter a year ago. a little light of what analysts were expecting coming in at

$32.9 billion. just shy of the $33.1 billion. a couple things to point out about the quarter. first of all, in north america, a profit of $1.4 billion, down almost a billion dollars compared to a year ago. a lot of this due to the fact they're in transition to the new f-series. and their production was down 25,000 more units than previous guidance. we just talked to some of the executives at ford. they said there were parts shortages for four vehicles. europe continues to be a problem. we talked about this for some time. a loss of $29 million. nearly a third of the increase in losses can be attributed to russia. the volume was cut in half. negative cash flow from ford for the first time in more than four years. down $700 million. people will look at that and say what happened. they shut down production the

finl five weeks. that obviously impacted receivables and as a result negative cash flow for the third quarter. but here's something that people will grab onto when they look at the positives here. pricing in the third quarter, an increase of $281 million. what was that due to? trucks and suvs. we've talked about this for some time. we'll talk about it as well with bob shanks, the cfo of ford when we talk with him on "squawk alley" later this morning. pricing is where it's at this morning for trucks and suvs. that's a big part of some positives in this quarter where ford beat the street earning 24 cents a share. back to you. >> all right. thank you. procter & gamble reporting too. the number was in line with expectations. it was $1.07 which was right in line. however, the revenue number was above. i believe -- wait a minute.

yeah, okay. 21.313 was the revenue. >> i saw 20.8. >> and actually the number that the company went with on revenue was 20.79. okay. so more or less in line. the organic number for sales growth was 2%. they're saying that is basically in line. there's also -- the recent management shakeup. i just went through the actual memo. a couple of them got new positions. we're going to talk to the cfo. i'm sure he won't have a lot to say about the management restructuring. but we will ask him about that as well. he's going to be on in just about 10, 12 minutes. >> talking about the guidance for the full year. they're reiterating their guidance ranges for the full

year. they say that earnings will be heavily influenced by the variation of foreign exchange impacts from period to period. they do expect significant negative sales impacts from foreign exchange for the current quarter. the october to december 2014 quarter. they expect organic sales growth in the low single digit range. >> they're trying to slim down the product mix. once again p&g has had to reinvent itself. you never know when to expand your offerings. >> what's too much? with the product that has a very loyal following of people. the company achieved these results despite what he calls a difficult operating environment.

>> all i know is those pods, those tide pods, people steal those. >> they're expensive. same thing with razor blades. that's why they're locked up. >> and if you put them in your luggage, they can be missing when you get to where you're going. like, where's my pods? they're small, they're salable. more now, shifting gears entirely again like we have to now when there's a case confirmed in new york. i'm talking about ebola. meg first rtirrell joins us fro york. >> hello. we're here outside of bellevue where the patient is in isolation treatment. we know he's 33. he was working in guinea, one of the three affected areas in africa. he arrived at jfk on the 17th. tuesday night he was feeling tired. it wasn't until yesterday morning that he became feverish.

it's important to note health officials say ebola is not contagious unless patients have fever. he was out on wednesday night. he went to williamsburg and also was at the high line park. mayor bill de blasio yesterday emphasizing that people who have taken the subway with him shouldn't be worried. there was little risk on the car with him considering he wasn't feverish at the time. it's also important to note that thomas eric duncan who was the first patient diagnosed in the u.s. in dallas had 48 contacts in the community and among health care workers. none of those folks came down with ebola in the community. it was health care work who are did. so that's a concern here. but bellevue is one of the designated hospitals in new york to be prepared for ebola. they're handling that here. andrew cuomo yesterday emphasizing there was a lot learned from dallas. and we know the cdc is looking here to help with the efforts.

>> all right, meg. thank you. just something different about -- we have treated doctors that have come back but we knew as they were coming back. right? >> they brought them back to make sure they get better care. >> right. so it's just that period where he was -- there's a period when you're lethargic and a period where you have 103. >> and you got to hope that if you think you're lethargic, talk about self-containment or self-isolation. that's when you should do it. >> he said afterwards he was tired the night before. but that was the night he was out. >> but he became lethargic -- to me the second you become lethargic -- >> he said it was higher the night before. >> did he take his temperature? >> taking it twice a day. >> he said the first time he caught it was yesterday morning at 11:30. but it was already 103.5. >> i don't know how you go from 98.6 to 103.5.

>> i don't either, but it reacts different in each person. >> just being nice? >> yes, i am. because you know what i said off the air before. the dow down just over 2% for october so far. our next guest is one of the top deal makers and says there are ten reasons to be worried about the markets right now and ebola is just one of them. joining us is peter weinberg. thanks so much for coming in. >> thanks for having me. >> what does this list of ten include? >> well, you know it as well as i do. just start in the middle east and that fills up at least half of them. whether it's iran, syria, isis, israel. and then moving to the larger economies in the world. look at europe and china and how those are very different economies today. so i've always -- recently said markets are quite resilient.

>> i'd agree. >> but you add on yet another issue, maybe this ebola issue, i don't know, it could be a significant problem. >> maybe it's a tipping point. maybe all these other things that hadn't mattered to this point. >> that's how we've all seen it over the years. little things make a big difference in the market. and it's never that one thing. it's always just the accumulation of concerns. >> 0% money around the world could explain a little of the resilient, could it not? >> it could and it certainly does. but that's also one of the concerns. we're not going to be there forever. it looks like the u.s. is letting out a bit of line on that. or will at some point. >> we always say this economy is resilient. maybe i'm just not noticing the real reason for it. i feel maybe the real reason for

it isn't as confident. >> i think there's strength in companies. there are some very fundamental progress operating separate. >> like last week with all the negive externalitieexternalitie. if we're -- why does the market go up after the minute we see a respite for the bad news? because there's nowhere else. and if there's no inflation until 2008, you've got to buy anything with a dividend. >> nowhere else in the u.s. >> i don't know. you want to buy italian bonds? they're the same price as ours. >> i agree with that. the u.s. is really -- we have issues, but on a relative basis, it's attractive. >> is it alternative because there's nothing else or is there really something good happening here? >> i think it's a bit of both. there's an e mor mouse amount of

capital that buys around stress. >> connect the deal making aspect of your life to the markets for a second. i always think of deal making as a barometer of confidence. in the corporate board room. you think we're on the cusp or worried about all of these problems. i'm trying to understand the disconnect. >> i think we're -- i don't know what we're on the cusp of yet. we'll see. but i'm saying there are a lot of things in the world to be worried about. the volatility of the past couple weeks -- >> does that slow stuff down for you? >> no. it really doesn't. board rooms don't sit there and make a different decision because of a hugely up day or down day. they'll make decisions if the value of their own stock is significantly lower for a significant period of time. but it doesn't -- the volatility really has not affected our view

of the deal activity. and all the factors that we've talked about many times. which, you know, low interest rates. >> what about all these mis-forecasts though? >> you know, i think we're going to continue to see that. and i think it's -- i think the market is much, much too focused on the quarterly numbers. and it doesn't really matter. i mean, if you miss -- sometimes company wills come in over forecast and their stock will get hit. sometimes they'll miss by a couple of cents and there'll be lots of concern. you know, it's more a question of the next three, four, five years. where is the earnings base of the company going? >> unless you have an activist investor on your tail. >> well, that does, indeed, affect how a company will behave, how the board behaves and how they'll react. no question about that. >> so you think activists and investors are for the good or for the bad for a long-term investor? >> i think they can -- they're both. we wrote this op-ed some time

ago that said there are some activist who is are actually welcome investors and do create change that would not have otherwise been executed. but there are some short-termers. which i think are damaging to the market. but it just depends on -- all activists are not created equal. >> peter is our guest host today. we'll have more from him throughout the hour. coming up, the breakdown of p&g. and then later the professor and squawk market master jeremy siegel. always bullish but what does he make of the volatility in the markets? that's at 8:00 a.m. eastern time. "squawk box" returns a this short break.

sun will come up tomorrow. procter & gamble's results out just moments ago. matching estimates on revenue. $20.8 billion. initially the shares were a little bit lower. and now they're higher. i mentioned that this guy was going to come on.

john moeller. i think it turned around, john, which wouldn't be surprising. now you're up 77 cents at 84. tell me about the -- i always get confused about the organic sales growth. i thought you were three to five or something. the low end, isn't that what you told us you were going to do? >> we've had some slowdowns. so we're within that range. and -- >> one to three? >> low to mid singles. interpret that however you want. it was pretty much an online quarter. as you mentioned we delivered earnings per share that were pretty good. up 9% which in this environment is very healthy. paid $1.8 billion in dividends. so it was a good quarter given the conditions.

>> the -- all the scuttlebutt that's been out recently, are you narrowing products now? what is the rationale? can you give me a quick summary on what you think the next manager will try to be doing to move into the future? what are you doing? >> well, we're strategically focusing the portfolio at about 70 or 80 brands across four industry groups and 12 categories. these are brands that are leaders in the industry. and we should be able to create a company that maintains the benefits of the scale of the current company but grows a little bit faster and is more profitable. >> that's a really good summary of it. and long ago i stopped being just absolutely blown away by how many things procter & gamble makes. trying to have all those brands and how each one of them performs in every country around the world means you better have great computers and a really good ceo and good lieutenants

and everything else. i don't know how you do it. so at this point, with the number you just said, is that below the number you're currently trying to sell around the world or about the same? >> we'll be going down between 90 and 100 brands. we've already done through the last five quarters we've discontinued or chosen to consolidate about 25 brands. we're well along this path. but we will have a significantly fewer number of brands. that will i allow us to focus all those activities you talked about son the biggest opportunities. we think that will make this a stronger company. >> will you answer a political question or will you just blow me off if i ask? i don't know if i want to waste my time asking it. >> you have to ask before i can answer. >> around the water coolers over the past week, like four people have been put into -- not early retirement but they're leaving.

people that were earmarked for bigger jobs. there are also others who got bigger jobs. have you been sitting around figuring who is going to run this place or be in charge? is it talking about nothing else over the past week? >> we're pretty focused on running the business. we're taking advantage of some normal retirements and normal attrition to build the structure to operate this more strategic company i talked about. it's interesting. we'll have the -- the size of the management team will be equal to what it was in 2000 and the company will be twice as be ig. so it's just about taking advantage of normal retirement and attrition to build the structure. >> the way you answer these questions, i would -- i've got my ceo. yeah. >> no comment. >> won't be part of the cfo council anymore. >> he listens and then just says no comment.

all right. well, thank you for -- go ahead. >> jon, real quickly, with the different environment described in the release, what is that referring to? is that the currency headwinds? the strength of the consumer around the globe? >> it's really referring to two things. one, market growth rates which continue to contract and develop in developing markets. and the currency headwinds. as well as some of the political mentionings. developing markets are still growing mid-singles. there are many opportunities in developed markets. think of the aging demographic, for example. 10,000 americans are passing the age of 65 every day. we've just launched a revolutionary treatment for tooth sensitivity. so it's difficult but there are lots of reasons to be hopeful. >> okay. we're going to let you go. all right. i have -- did you see the colts

game? the bengals/colts? >> unfortunately, i did. >> i'm done. i'm done. i'm done with the bengals now. i wanted to let you know that. >> you got to give it one more we week. >> no. i've done it too many times. monday night games, primetime games. i'm done. i'm done. go ahead. >> it's called fair weather, joe. >> no. i've had 25 years of torture and misery. >> jon, p&g is such an active participate and has been for many years. you have a view on tax reform and is part of that inversions? >> first of all, we've been a u.s. domicile company for 177 years. so if the past is any indication of the future, we're not going anywhere. but i think, you know, it's an important question. when you have an uncompetitive tax rate and an economy that's

globalizing, three things are bound to happen relative to domicile and mna. one, companies will move. two, company wills get started offshore rather than onshore. and three, u.s. assets will increasingly be purchased by foreigners. so company wills move, they'll get bought, they'll get started somewhere else. that's one of the reasons among the many that i believe we need to seriously consider tax reform. that would -- you know, we want u.s. companies to be fully competitive with the international domicile competito competitors. doing that will give american companies opportunities to create jobs. this is a critical issue not just for our company but many. we're talking about american jobs, american industry, and american standard of living. >> i want you to go back and just replay that, what he just said.

this is the way mid-westerners think without any of the b.s. that was simple, wasn't it? thank you, mr. ceo. i'm just saying, i don't know whether that's going to happen. but anyway, we appreciate it. thank you. >> have a good day. thank you. breath in. . . and . . . exhale. . . aflac! and a gentle wavelike motion... ahhh- ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. see why speed matters at aflac.com. [sfx] duck snoring

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welcome back to "squawk box," everybody. in our headlines this morning, a new york city doctor is being treated in isolation this morning after testing positive for ebola. he'd been in west africa with the doctors without borders group treating ebola patients. we'll have more coming up later in the show. also procter & gamble at $1.07 a share this morning. it's also exiting the duracell

battery business. and mixed quarter for ford. the revenue was slightly below forecast. ibm spent a hundred billion dollars over the past ten years buying its own shares. and yesterday pfizer announced a repurposing plan. has the buyback binge gone too far? we're going to talk about that. our next guest sits on the board of four fortune 500 companies. suzanne nora johnson, she currently is on the boards of aig, visa, intuit, and pfizer. and peter weinberg is still with us. the ibm thing, when everybody looked at their earnings started a conversation about whether this whole buyback thing has gone too far. where are you on this and i assume you must think they're at

least okay in some degree because you're on the board of pfizer. >> there's been a question for a long time about whether capital allocation is correct. i think this is just part of the conversation. if you look over the last couple years, it has eped and flowed. it's something on every board's mind. because there's no investor who isn't focused on it in some way. >> if you pursued a strategy three, four, five years ago, you looked like you were brilliant. now it gets a little bit harder given where the market is to look as brilliant. then the question becomes if you were going to use that money and try to give it back to shareholders, is it better to do it in the form of the buyback or a dividend or frankly better to do it in mna and try to actually build the actual business? >> i think the best management teams are always looking what's the best use of cash. and if there's organic opportunities, inorganic

opportunities, that always comes to the top of the list. but i think there's a sensitivity of making sure that the cash is not there burning a hole in your pocket. and again, there are times when dividends make sense. >> this is not a new question or controversy at all. the only reason it's back in the spotlight is because ibm is borrowing money and getting closer to the earnings, you can't do it right before. but they're getting the stock up to a point to try to get the float down to get a better earnings per share number because they've got nothing else going on. there are times that buybacks make sense. look at icahn's strategy with apple. are there better investments to make or if not do you just retire some of your stock and put it down? think if ge had bought back. 10 billion shares outstanding. many say not all the acquisitions were brilliant. it's been at $25 for 15 years. >> you're right. the discussion's been a long one standing. i think particularly when you're in an environment of low interest rates, the opportunity

to borrow is a unique opportunity from that standpoint. >> and don't forget that ceo when we link pay to performance, suddenly there's an additional reason to get the stock higher. when the share price goes up -- >> is ceo pay linked to earnings per share or other metrics? >> it's like the stock price. if you want to get the stock price up, you don't have to do anything right. you just get higher earnings per share numbers. >> the stock buybacks are not a gimmick or they're not financial adhering. >> unless they are. >> in a most simple sense, if you're sitting there with cash with zero yield to simply reduce the share count to provide those earnings to a fewer number of shares is a good thing. that's just smart. it's not a gimmick. >> it's smart if you think the stock is undervalued or possibly fairly valued maybe. what do you do when --

>> that's not necessarily true. >> you don't think that's true? >> no. because you can lower the stock value by retiring -- >> so how do you measure it? >> institutions and suzanne you'd have a good sense of this, but institutions are clamoring for capital. so every company doesn't have kind of limitless growth opportunities to plow capital into either growth or acquisitions that might not make sense. >> and most stocks don't range year to year. if you're running it right, it goes 30 to 100 to 300 to split. that means you might be buying stock. >> joe's right. you look over a period of time. what's the average price you purchased that and what are they over time? >> kodak, that's what everybody

talking about. buying back shares at 75 and 80. that probably was not that smart as it was going. right? but with a microsoft or google, as you're buying, it's like dollar cost averaging if you're buying back shares the entire time. >> but does it make sense to buyback shares especially if you're looking at zero interest rate? >> it certainly can. there's been lots of examples where that worked. look at gap stores. gap stores has been a flat topline for ten years. a flat bottom line. but their stock has done beautifully well. it's a high cash flow of business. which is from mostly cash generation. >> so better for dif dend or better -- what would you rather have? or both? what's better? >> it used to be the fact that capital gains was a more attractive tax rate than dividend. it's more complex. many investors who are not

taxable so they don't really care. i think it gives choices to move back. >> and from a corporate planning point of view, i think that management teams and boards take very seriously every time you issue dividends that there's a commitment this is going to continue over a period of time. clearly with repurchases they're clear with flexibility and what your other opportunities are. >> let me ask you one other question because i know you're on the board of pfizer. we talk inversions a lot around this table. your company had considered one or maybe is still considering one. how do you think about that particular issue both from what the government has done over the past two months. do you think it's now changed the game where companies aren't going to do it? the political sort of response, the public sort of response especially when you think about companies like a pfizer that are

living in the public arena. the most important thing here is we get some kind of tax reform that makes the u.s. in a competitive situation. and that is critical. because if we really do want to be on a level playing field, we need to get it right. that's a hard thing to do. fax reform has many mouths it has to feed. >> such a ridiculous argument. >> you look at the walgreens transaction that did not turn into an inversion. you may argue off the air. but they didn't. i could argue to you and i think if you talk to people in the room, part of the reason they did not do that deal was they literally believed the

consumers, there would be a backlash. >> right. you should not have our companies wanting to leave and have to worry about a pr back lasch. they should want to stay here because of the business environment we have for attracting capital. to talk about patriotism and whether you want to pay taxes? it's a moot point. it's stupid to have this argument. we need to fix it. >> but i think it's about strategy. i really do. a strategically attractive transaction. forget the whole tax -- >> but some of them weren't. some were done just -- >> some were not. >> i don't fault them. i talked to ian reed about why he was thinking about doing it. he could spend a billion and a half more money on research based purely on not paying that billion and a half in taxes. on facilities, on manufacturing, on all these different things. >> and you knew he would? >> no. i think he's lie and wants to get it in his paycheck. >> not in his paycheck. >> i take him at face value.

>> as a dividend or as a buyback. >> oh, no. it might go to shareholders and then they pay taxes on their dividends? that's a bad thing? >> i'm just saying the argument's -- all i'm suggesting is the arguments made for -- >> can you come back on other days to help me? i can't get anywhere. it's the generation x thing. the two of us have differences as generation baby boomers. >> my parents are baby boomers. >> i'm like generation "a" if you guys are "x." thank you for coming in. it was good. >> thank you. >> you'll be here for awhile longer, won't you? >> i will be. >> we're baby boomer bros. up next, craft beer golfer and brewer graeme mcdowell. this guy, anyone who watches the rider cup, you love him but he

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professional golf are now in the beer game. bradley, mcdowell are launching a series of craft beers through golf beer brewing. "fas joining us now to talk about his new venture is graeme mcdowell. it's good to see you. thanks for joining us. >> good morning, guys. thanks for having me on. appreciate pit. >> a lot of other stuff going or, so we got to do this fairly quick. you love a certain style of beer. that's the rationale. freddy's got the scandinavian deal. you got the celtic style. and keegan is doing new england. you're going to brew it in lakeland. so sort of the craft beer phase and it's telegolf pros. >> the concept being golf and beer are very synonymous with each other. many golfers getting in the wine business. we felt there was a niche opportunity to get into the beer market. craft beers being the emerging market here in the u.s.

and, you know, obviously trying to get golfers away from maybe their standard brew that they enjoy on the golf course. we're trying to create approachable craft beers that can bridge that gap between the light beer drinker into the craft beer industry. some of the craft beers can be a heavy taste profile. we've gone with more approachable taste profiles. we hope golfers can choose a beer and have a little fun with it. >> i think that makes fun. i can't imagine ordering a glass of wine there. unless they face you in the ryder cup, i think i'd have something harder maybe. especially after -- who was that jordan spieth that ran into the buzz saw that was graeme mcdowell? what were you three or four down? >> yeah. i was three down. i thought i was running into the buzz saw that was jordan spieth but managed to dig deep there.

that was an amazing weekend. the ryder cup is special. i played with keegan on friday afternoon. we were joking around we needed some of our brews to be around on sunday evening. perhaps after the ryder cup, something harder. >> people go into wine, i think if it's something you like why not give it a shot. you've got to expand your horizons. you're not going to be -- you know, you probably played for a long time. golf can do that. but you've got some other business ventures as well. i know you've got a tracking device as well. but, you know, we're going to have to have you in studio at some point. and talk more about it. we're huge fans even though you hurt us badly the last two ryder cups. but thank you. we're going to keep it short today and i'm going to try some. it's called g-mats celtic style pale ale. >> i think it's approachable,

refreshing. it's a 19th holer. whatever you're into. >> and we got to do u.p.s. there's a lot of earnings hitting. thank you. more on where we can buy it and we'll check back with you in the next couple months. one of these days we're going to get out, i've invited you before. i know you can play without me. but i'd like to play with you. thank you. see you later. >> definitely. i'll pop in and see you guys some time. thank you. >> u.p.s. coming out with better than expected earnings. came in at $1.32. that stock is up right now by about 1.5%. i had indications higher in the last couple minutes. that's a 13.8% improvement. u.p.s. says it's because of growth across all three of their segments. they talked about daily packages in the u.s. the man both from the consumer side and the business side improving here.

shipments up 9.4%. and they say that they delivered 1.1 billion packages around the world. that's up over a year earlier. also talked about how they continued to make investments in expanding. that's going to be watched so closely. last year with the weather, it was a problem for both fedex and u.p.s. that's what people will be watching closely. right now you can see that that stock is up by about 1.5%. when we come back, we're going to ask peter weinberg more after the break. and in the next hour reaction to u.p.s. earnings. "squawk box" will be right back. ? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles

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welcome back, everybody. let's talk soft drinks. during a rapid fire question and answer period with mario gabelli yesterday, we asked him which stock he likes better. coke or pepsi. >> i like them both, but i'm betting on dr pepper because it's $15 billion. has good numbers, good cash flow. buying back stock. >> dr pepper snapple stock jumped yesterday after they reported earnings of 98 cents a share. the stock hitting a new high. one of the biggest gainers yesterday was dana corporation. mario talked about that earlier as well. just tells you the power of the guest host. joe? toyota selling some of the stick in tesla.

toyota said it will continue to study possible cooperation with tesla in the future. it had sold 4% stake in tesla for $780 million. i don't know what any of this means. why would they sell? >> maybe it says something. facebook announcing its latest project. it is a throwback to the early days of the internet. facebook rooms is an app that hopes to revive the idea of internet forums on mobile devices. no identifying information is collected. users can create an anonymous user name and share ideas. it is available with apple and there's an android version in the works. >> what is it called? >> rooms anonymously. >> i'm still a myspace guy. love it. no. i've never gone on either one of those things. i've tweeted. but now i'm souring on tweeting.

i am. are you? >> i soured a long time ago on tweeting. >> did you really? >> yeah. >> there are many people on twitter for just one reason. just to be obnoxious. >> i've been tweeting this morning. i caught one of those this morning too. really obnoxious tweeter. >> it's like, weird. they're sitting there waiting to -- >> trolls. they're called trolls for a reason. they're under the bridge. >> we got to get to our guest host, get a bit of an outlook on today's deal environment from shakeups to breakups. peter weinberg partner and head of corporate advisory. before we get to that, i want to ask you, two things that have happened in the boutique advisory business recently. one is you hired a ceo in bob steele. i want to understand the thinking behind that as a founder and then deciding you're going to let somebody else kind of run the place. and then peter -- paul toudman

former morgan stanley is going to take over a blackstone business and what that means to the landscape. >> we met as a partnership last fall and came to the congratulations that we were not market share constrained. we happened to be in the fortunate position where the boutique model is attractive to clients and there are enormous opportunities. we're just thrilled to have bob, a person of his experience and the divorcety of his experience. i've known bob for many, many years. he's fit us like a glove. he's been with us for three or four months. so it's great. with paul, to me, it's sort of a similar theme in that it's the ultimate affirmation of the independent model. here you've got blackstone who started life as an advisory firm surrendering that business or

giving that business in exchange for equity. it's a wonderful affirmation of the independent model. >> and so what happens to jpmorgan? >> it's never binary. i think the boutiques have more market to run. i think they have 25% of the market now. i don't think it's going to 50%. maybe close. but the big firms need to provide a very important role in advising. >> spinoffs, we've seen at hp. you had advised them years ago when they were thinking of doing something like this maybe ahead of time. then we have ebay doing the same thing. we're going to see more of that? >> this has always been the issue where you have a business where you have a cash cow and you have a growth business. there's some markets that like those coupled together. and there's some markets that like those split. this is a low interest rate environment. so the cash cow independently

can pay back capital to shareholders. that's a good thing. and the growth businesses can finance in this low interest rate environment. so this happens to be an environment that will sort of provoke and embrace spinoffs and splitoffs. >> okay. peter, thank you. >> thank you. >> appreciate it. >> thank you very much. >> good to see you. >> thanks. when we come back this morning, a new york city doctor is in isolation after testing positive for ebola. before that he was on the subway, he went bowling, he jogged, he was in an uber car. how difficult it is to retrace his steps and locate who might have come into contact with him. up next, market reaction to the news of ebola in new york city. we saw some declines from the highs yesterday although the dow still finished up by 216 points. modest declines right now. question is there markets follow europe lower after yesterday's 216 point rally? "squawk box" will be right back.

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welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with andrew ross sorkin and becky quick. you're looking at a live shot now of bellevue hospital. where last night dr. craig spencer tested positive for ebola. spencer was working in guinea and returned from west africa to the u.s. last friday. he lives in harlem. took a subway, went bowling. it's unclear whether he's going to be moved to one of the hospitals that has successfully treated other u.s. ebola patients. a new york mayor says that bellevue hospital for its own right is prepared and equipped to handle dr. spencer's treatment. he didn't go in until he had a 103.5 temperature. >> i think he was vomiting at

103.5 yesterday. >> maybe just felt lethargic and tired prior to that. hopefully when he became symptommatic the first place he went was in. he knew because he was self-quarantining himself. >> bad self-quarantine. >> not really. >> he was staying away from other patients. >> we should tell you about another disturbing situation. a man wielding a hatchet attacking on the street. video shows the man charging towards the officers. one officer was struck in the head and is in critical condition. another was struck in his arm and is in stable condition. and a female bystander was struck by a bullet and underwent

surgery. police are investigating whether it could have been inspired by the terrorist attacks in canada on wednesday. >> and in the post and daily news, it points out there's nothing we know at this point. but he had recently converted to islam. we don't say that? >> no, we said that yesterday. in canada, yeah. >> this guy. >> oh, this guy. that i did not know. >> this guy too. i think. unless i read it wrong. unless i'm reading it whether it's related to the guy yesterday. i thought i read that. >> we're going to switch gears for a moment. we'll come back to that in a bit. that matches estimates on revenues at $20.8 billion. the company will split off duracell into a separate company. also ford reporting earnings of 24 cents per share. that beat expectations.

revenue was short of wall street expectations. and u.p.s. beat estimates with revenue beating forecasts as well. it sees december shipments up 11% from a year ago. it's been a big week here on cnbc. bold calls by big market players. dominic chu has been tracking the who's who of wall street and joins us now with that this morning. good morning to you. >> good morning. our air this week at cnbc has been chock-full of heavy hitters in the markets. you name them, they've been here. we picked out about four of them to give you an idea of the big elements these guys have said. now, first of all you've got mario gabelli on yesterday here of "squawk box" talking about the current level of the market. he said and this is interesting, that, quote, this is a reasonable place to kind of pick your place and start buying stocks. so gabelli who handles a lot of

institutional money says this is a good place to start buying stocks. he likes graco, a couple of big names he thinks are good buys at this moment. gabelli, buying the dip. another guy buying as well is david einhorn. this guy, a big hedge fund manager. makes a lot of smart bets. he has been buying the dip as well. in the last couple of weeks we've been able to pick up a bunch of things we're pretty excited about. now, of course, david einhorn has most closely been associated in recent knews with stakes and views on apple. also the semiconductor company as well as sun edison. now, carl icahn -- let's go to kyle bass first. kyle bass, the end of qe on a macro theme says, quote, when the training wheels come off the market in central bank land macro becomes functionally much

more relevant. other places like japan also, japan maybe going to ramp things up. we know europe has its own problems. so again, that's it. kyle bass. the one that we're talking about right now overall, this idea that we have macro and micro effects, the idea we have all these things at once, maybe the heavy hitters have something at least we know about. >> with einhorn, gold was his thing for awhile. not the only thing, but dead wrong on gold. by saying wow, i like some of these and then turn bullish. i don't think he was that bullish on a lot of the overall prior to that. to say, wow, we were able to buy things indicates to me he might have come out over the past three years. if you're one of those guys that were worried they weren't in.

>> they do pick their spots on the market. it's about whether they can string these stock picks together. that's what generates the returns. >> past performance is not indicative of future performance. you have to say probably pretty indicative of -- but you can't give a past to everybody. you can be hot and cold. even john paulson, guys like that. >> he made a great bet and maybe not a great bet on gold. you're right. these guys do have their ups and downs for sure. >> so let me do this. let me give this. let's welcome in one of our squawk market masters jeremy siegel. he is a finance professor at university of pennsylvania

wharton school. good morning. >> good morning. happy to be here. >> i would not know what to do if they -- did you hear my question, professor? are we on track to hit 18,000? >> it looks more likely now than it did about ten days ago. i remember when we were talking last week, what did we say? we said everyone's waiting for that 10% break. when everyone waits for something, it's not going to happen. it certainly looks like we put in a bottom last week. of course with this rapid comeback, almost 2/3 of the decline, it might take a rest far little while. but i just read a report we've had almost 200 firms reporting third quarter. 79%. >> professor, when did we get ebola scare mostly alleviated?

>> yeah. i think when those individuals in isolation in texas -- >> before the latest news. before the latest news. >> well, i think that we also heard some major countries in africa have been declared ebola free. i mean, i think a combination of those things have lowered the anxiety. i mean, this new york city much less anxiety associated with this. i think as a result of what happened in texas was happened in many countries. i think this also will be isolated and taken care of. a major cause of the bounceback we have seen. >> right. and i think no one should panic at this point. i think you can take a lot of consolation from the way things did play out. not only in nigeria but also in dallas as you point out. as someone that for years you

have a certain target in mind for the way the global economy, how it should play out in terms of the stock market but when something like ebola does come along, were there moments where you say all bets were off low probably, high impact. are there times you say everything could be moot based on this? >> there always could be threats. i personally didn't feel that ebola was going to be, but bird flu which is transmitted through coughing in the air, that sits as a threat that could come up at any time. you know, we've seen a few episodes of that. we are just one step ahead of some of these possible pandemics

that can throw a wrench into the estimation of the markets. >> and there's a lot of different gradations. >> fewer people shopping in crowded stores or anything any of those things. you don't need a full bloen outbreak to affect that. >> i think the connectedness of everyone, we're all on the web. wow in a matter of a few hours you have everyone staying home. you know, it's a first reaction that you have. so in some ways, i love the connectedness of everyone. but it can spread rumors. it can spread fears, anxieties much faster than we've ever seen before in the past.

>> do you think the fed is standing there ready? that's one of the things people pointed out last week. we got down 5% and we already had guys saying if we need more qe, we're standing here ready. they do seem ready to prevent things before it goes down. >> it was the time we heard the yellen put. i do think the reaction of a few of those fed members last week was really based on what we saw with prices. everyone the hawks will soften up when they see prices going down. so it was not just the stock market. it was also a trajectory of prices below the fed target.

wref had a bit of a bounce in oil. but the hawks and the doves both look at those prices. if you take a look at the futures market they're saying we may not start hiking interest rates until late next year. not just spring which is what the expectation was before this oil price declined. so there's a lot in the mix. >> we've got to go. back to my intro that was so -- i like sod much. do we hit 18,000? 30% we do? >> you know what? i'm going to say 50/50. now no one can say i'm wrong.

>> don't do time and direction. you got to do one or the other. >> i know. i know. perhaps i've been sticking my neck out too much. but -- listen, november and december have been good months for the market. we're only about 7% away. >> right. >> it's definitely possible. >> and another possible bottom in october. it's so weird. it's weird it keeps happening if it does. >> it's like halloween, it's that weird. >> all right. >> we are schizophrenic with the music this morning. scary stuff to the happy stuff. >> all right, professor, thanks. we'll see you again. >> thank you. the tease i'm about to read is the scary stuff. how many people could have been exposed to a doctor who has tested positive for ebola. as we head to the break, look at equity futures at the hour. dow looks like it would open off down 27 points.

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in a city with over 8 million people, retracing dr. craig spencer's steps is of

utmost importance and a serious challenge. meg tirrell is outside bellevue hospital where he's being treated. we just got word we know you're going to talk about. we said 103, you don't go from 98.6 to 103. that worries us because he was out the night before. now that's been corrected. it's not 103. he had a temperature of 100.3 which would seem to be more -- that would be a positive data point. hugely positive. can you confirm that? >> yeah. nbc has confirmed it was 100.3, not 103 degree fever that dr. spencer came down with yesterday morning. that's a lot lower obviously than 103 degrees which people were questioning. that seems very high. so 100.3 is what we know right now. this is new york city's first case of ebola. we're here outside of bellevue hospital where he is being treated in isolation.

i'm sure a lot of new yorkers are feeling concerned this morning. but the governor and the mayor out there trying to reassure people there is little risk of this spreading in the community. governor cuomo on the "today" show saying they've learned from experiences in dallas. >> we have been preparing literally for weeks on a coordinated plan between new york city, new york state, federal government, cdc. >> there are also a lot of concerns from new yorkers that dr. spencer got on the subway. that was before he started feeling feverish yesterday morning. but we know he was feeling tired as soon as tuesday. this is not spread within the community in the united states. only among health care workers. bellevue says it's been prepared for months to do this. and they're one of the designated ebola hospitals in new york. he's in a designated unit here

in isolation. other calming words today from kent brantly saying in part, quote, it sounds like new york has done everything right to contain the case. i hope the of new york can set an example for the rest of the country by handling this with reason and calm. >> thank you very much. we'll check in with you later this morning. joining us with dr. scott gottlieb. he is at the american enterprise institute. you've been following ebola along with us for some time now. i wonder what you think about this latest development. >> well -- >> it looks like we're having some problems. he's in san juan. we knew there had been some technical difficulties. again, the issue -- >> is he back? >> oh, scott are you with us now? >> yes, i am. i was saying you have to admire this individual's courage for going over. you knew the risks he was taking.

it does appear he presented hot. now the new information the tests came back very quick which suggested there was more virus in his blood. the fact he got a quick early result on the test to determine he was positive. >> all right. yeah, we've been grappling with that and how to interpret when you are able to do the tests. so you're now confirming it has to do with whether how much virus is actually in the blood stream before you can actually pick it up. why isn't it more -- isn't there a way to do it -- it's an rna virus isn't it? >> looking for the rna. the assumption you're not contagious until you develop a fever is based on what we know. you don't have detected virus in your blood until you have a fever typically.

but keep in mind our entire body of clinical knowledge constitutes at 1600 cases. most of the time we didn't have sophisticated tools to really examine those patients. so we're learning a lot. there's a lot we don't know. there is a variable presentation. some people present with higher virus loads early in the course of the illness. some people don't. i think we're seeing that with the cases here in the u.s. some people present very sick. others don't. >> do you make a distinction. i mean, we took it as good news this morning that it was at 100.3 fever opposed to 103 fever. and we took that and i think people are taking that as good news because the view was if he was out the night before, had been to a bowling alley, on the subway, perhaps maybe he wasn't contagious then. if he was 103, it's a rd to get to 103 without having gotten hotter along the way and maybe

the night before he was sicker than we thought. >> right. the lower temperature is reassuring to some degree. it suggests he was less hot. the fact the test came back positive so quickly, suggests that he was. keep in mind there isn't this binary moment where you become all contagious and you're completely not contagious prior to the onset of the fever. we don't really know. you typically are not very tajs. and the virus itself accumulates first in the liver and not in the lung tissue. it's harder to transmit it early in the course of the illness. >> very quickly, we've talked about the idea this is a heroic individual over there trying to help people in western africa. should there be any sort of a quarantine period if you are coming back from working with patients directly who had ebola, should you be in a self-imposed quarantine period for 21 days?

>> well, sounds like he was being careful and self-monitoring and watching his context. although one is now under quarantine here in the hospital. cdc should actively monitor people who come back with telephone calls and follow-up. it's less likely for a health care worker that is going to know about the onset of the disease. >> but you want them, though, this goes to the idea of do you want them in a subway, taxi, that's the issue. >> right. i think that's going to be hard to impose. if we do do that, if we impose a system to quarantine people up to a month after they arrive back, that's going to discourage health care workers for going over there. he wasn't providing medical care. it looks like he was taking proper precautions based on what we know and i'm speculating here. but it looks like he was taking proper steps. >> scott, in a word were you surprised at the positive

outcome in dallas? did that even as much as you know did that surprise you that no family members -- i mean, that's good. >> yeah, i was very surprised by that. and that is reassuring. i was under the assumption based on what we were told that some of the family members would be positive. >> all right. dr. scott, thank you. we appreciate it. coming up, with the busy season for u.p.s. around the corner, we're going to talk to analysts about what you can expect. ding never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea, schwab can help you take it on. tdd# 1-800-345-2550 we're getting a lot of questions tdd# 1-800-345-2550 about organic food stocks. tdd# 1-800-345-2550 [ male announcer ] sharpen your instincts tdd# 1-800-345-2550 with in-depth analysis by schwab experts. tdd# 1-800-345-2550 and if you want to run your idea tdd# 1-800-345-2550 by a schwab trading specialist, tdd# 1-800-345-2550 our expertise is just a tap away. tdd# 1-800-345-2550 what's on your mind, lisa? tdd# 1-800-345-2550 i'd like to talk about a trade idea. tdd# 1-800-345-2550 let's hear it. tdd# 1-800-345-2550 [ male announcer ] see how schwab can help tdd# 1-800-345-2550 light a way forward. tdd# 1-800-345-2550 so you can make your move, wherever you are,

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still to come this morning, brown delivering for investors. we'll find out what they're saying about the state of the economy. "squawk box" will be right back. financial noise financial noise financial noise

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welcome back to "squawk box," everyone. among the companies reporting on the bottom line is ford, u.p.s. we'll also get fresh data on housing market data in about 90 minutes. the government out with new september sales. they're expected to fall 6.9% negating part of august's 18% jump. and pfizer has announced an $11 million stock buyback. but it's hurt az astrazeneca.

also a partial solar eclipse made for a wonderful sight. this is a time lapsed view as the eclipse began. the moon blocked out part of the sun. people watched all over the country, weather permitting. expect for areas in northern new england and maritime provinces. the last eclipse occurred on april 29th of this year. let's assess how companies are fairing. 40% of s&p 500 companies have reported results. that would be roughly 200. >> good. >> thank you. 73% of -- now it's going to get complicated -- those companies have beat expectations. breaking that down even further, 91% of industrials and 89% of

health care companies have beaten the street while 100% of the telecom companies reported disappointing results. here with us now is ceo of consensus matrix. i don't understand. can you explain? what is this basically saying? is it a bifurcated number? it could be the analysts are wrong. >> i think the analysts always get that wrapped that the expectations are low. i think earnings have been strong. consumer discretionary, some weakness there. had a couple of industrial names that came out really strong. i don't think we should be apologetic. earnings have been strong. we'll say they're strong. there's a lot of fear that's driving tnt we saw last week.

if you look ate it from a corporate fundamental standpoint. earnings are strong. that could push the markets higher. >> i like hearing that industrials are doing well. consumer discretionary is out to me. it could be better because of prices. there seems to be a hangover from housing or something that still has people -- maybe it's the unemployment doesn't feel like under 6% right now. >> consumer discretionary is very misleading. i think you have companies like apple, chipotle, michael kors that are just outperforming the market like crazy. then you have the laggers. like mcdonald's who reported weak u.s. numbers. and so it's a mixed bag. you got to pick your spots there. but i think overall, i think oil prices are going to help. i think it's going to be very interesting to see as the

retailers start reporting, do they make mention of the fact that oil prices are down significantly. where are you spending that money at? are you dining with that, using it on retail? you've got to pick your spots whereas i think in some of the other sectors, it tends to be a little bit more easy to pick whereas in consumer discretion, you've got to be selective. >> how do you explain this sort of multi-national coca-cola -- do you look at a coca-cola situation and say it's a coca-cola problem? >> it's a mcdonald's problem. a lot of these u.s. companies that are now relying on international for pretty much all their growth. you know, they're going to be affected by currency fluctuations. which have been well documented. but these companies that have just been dominating the u.s. so long are looking for other avenues. the international market is really the only place where they can get that sort of growth. so i think it's very

interesting. >> are we at a turning point with companies like that? or is this a blip along the road? the reason i ask, you spend time with someone like warren buffett. he'll say coke is a company that's here to stay forever. >> right. >> i don't personally cover the stock, but i think coke will be around in 20 years. again, is it a good stock? there's a difference between is it a good stock or is it a good company or is it a good, you know, like just -- is it going to be here in 20 years. there's a big difference. would i think coke is a good stock for the next 20 years? i don't think so. but is it a good company? yeah. i don't know much more beyond that. >> the system to deliver whatever people are drink at whatever point in the future, you ought to be able to buy whatever. >> you think it should be a great business. >> if you manage it right. even b if people aren't drinking regular coke anymore. >> they might be drinking water.

so sell the water. >> i think our perception of these names in the u.s. is very different than it is internationally. i think that's something to really keep in mind. if you believe in the international growth story, then companies like coke, mcdonald's, company with a lot of legs moving forward. our perception is different. our perception of coke is a sugary drink we don't want our kids to drink. >> right. and the other question is does the rest of the world go on with the way we are going. >> they're still chain smoking in other parts of the world. >> i don't know. it's a tough call. >> there's a time and place for that. late at night, you know, cocktails. i don't mind it. >> smoking? >> yeah. i mean, i'm just not as much of a purist. i'm not -- >> you haven't been around it in awhile. >> i haven't. i was at a cigar -- everybody smoking cigars. for the next week i walked in

the closet and could tell i was at a cigar place. anyway, thanks. what's wrong with telecom? >> i think that's misleading. there aren't too many reporting yet. that's a bit misleading. >> that's never stopped us before from making a statement. thank you. >> thanks. up next, safety regulators urging car owners to repair their vehicles if it was recalled for a takata air bag. but is it too little too late? is there a lot of confusion out there at this point? what should the government be doing? we're going to talk about that after this. plus let's look at how the futures are shaping up now that we're heading towards the open. dow futures have pointed positive. up one point above fair value. everybody's waiting to see what happens next. "squawk box" will be right back. how do you beat the number one seed? you just have to win 70% of your points at net. and keep unforced errors under 10%. on the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights.

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welcome back, everyone. capitol hill is increasing pressure on safety regulators. takata to fix millions of defective and potentially deadly air bags. it could become the largest automotive recall in history. david shepherdson of the detroit news joins us with more right now. thank you for being here today. >> no problem. >> this is a situation where not all recalls are equal. some have varying degrees of urgency. this one seems like a pretty urgent one. because if you're in a small minor accident, you could have metal shards thrown in your face. how do we get our arms around this? >> it is very serious although it's a relatively small number

of incidents. when it happens, it's violent consequences. the government did take really an unusual step of urging people to immediately get fixed. a lot of companies don't have enough replacement parts. companies like toyota are moving parts from the northeast and other parts of the country to the humid areas where they think the problem is more severe. >> that's fine and well to be telling people not to be sitting in the passenger front side seat. but somebody has to sit in the front if they're driving the vehicles. >> toid said they're going to have a case by case basis. saying in the gate of gm, they

did provide tens of thousands of recalls. why doesn't toyota and these other companies take the same step? i think there is a lot of pressure on them to provide those loaners. >> i guess that's where we start to learn what the government response will be. do you think there will be a stronger response from the government saying the companies do have to provide -- to me it seems ridiculous to say don't sit in the front seat but still told to drive the car. >> what this is going to do is put pressure on congress to decide if more safety reforms are needed. nitsa requires a cumbersome two-step process requiring months and months and going to court. there are proposals to require the government to get urgently unsafe vehicles off the road. so i think the government is somewhat ham strung by relatively limited staffing and

limited power. and the question is will the government get more power and will they take a tougher line? i think there is pressure on the government to do that. >> who do you think are the winners and losers in this case? if you look at the car companies and takata? >> i think certainly takata's competitors in the air bag space like autoleave which provides air bags to other major auto companies. i don't think there's any winners in the auto space although there are some companies like volkswagen who don't use takata air bags. i think long-term it puts a lot of pressure on the companies to really look closely at these air bags. remember, because there are so few suppliers more and more if there's a problematic part, it affects the entire industry. >> all right. david, thank you for joining us. >> thank you. coming up next, jim cramer live from the new york stock exchange as we get ready to wrap up another wild week on wall street. then a look back at the week that was on "squawk box" from

richard fisher to doug o oberhelman. all that when we come back. don't just visit rome.

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u.p.s. predicting a double digit increase in holiday season. joining us now with reaction -- i'm sorry, i should not be laughing -- is don broaden. she a senior research analyst at avondale partners. >> you worked on that and then messed up half of it >> help me with this. what's going to happen when we get to the holidays given the problems u.p.s. had last year and how much they're going to spend this year and how much we should be worried or the market should be worried about that? >> well, that u.p.s. has been very clear with shareholders, very clear with the public that they cannot allow what happened last holiday to happen again. and they have expanded infrastructure by 175 million and they've gone to their line haul suppliers, people who supply them surge capacity and said build it for easter sunday. we will make sure you're

compensated. we need the capacity. we can't let this happen two years in a row. >> and therefore, though, how much is that going to impact earnings? >> well, that's the real question. i think they're going to be successful in their efforts. they're got operating engineers. i think the concern in long-term and why we have the stock ready to hold is volume may come. but will the margins? i worry they may spend so much the margins will be detrimental. >> you just said $170 million. how much will they spend? >> originally they said they would in addition to that spend more on transportation. >> don, what do you make of what's going on in amazon, the whole move towards free shipping and how long that lasts given the margins that the market now wants to see from an amazon. i imagine at some point the other retailers too. >> that's going to continue. that is an incentive by retail toers close the gap between -- i mean, think about it.

e-commerce. what is an advantage of brick and mortar over e-commerce? immediacy. an e-tailer able to say we'll give you free expedited shipping in amazon prime. that's a value that closes the gap at brick and mortar. that's something i'd expect it to continue to be. after all, u.p.s., fedex, the post office, they're still getting paid. it's just embedded into the price. >> we'll leave the conversation there. thank you so much. >> thank you. down at the new york stock exchange, we are joined by jim cramer who joins us now with more. jim, when we were talking a week or two ago, we talked about and agreed that there was an effect from the fear conjured up by the case in dallas. patient zero. and it does appear now, jim, because of the positive outcome there, that -- i don't know, all

of us have experienced a little bit more, i guess, to where we don't necessarily jump to the same conclusions begin. is that fair to say with the markets being unchanged today? >> i think it is. if you're at the gutter bowlingr balling in brooklyn you would say, if the people who shared the apartment with mr. duncan did not get ebola, i probably didn't get ebola because he was in the same room with me. people who rode on that subway car, i think they are less petrified versus a plane ride. when "the new york times" led with it on the upper left hand column, i thought i wish they had'nt done that, but it's a local story. people have come to the conclusion, those who said it's morphed into something that spreads in the air were wrong. we just have to own the fact they're wrong. therefore, we cannot be as frightened as we were ten days ago. >> right. we've been using the low probability/high impact. impact means a lot of different

things. there's impact where maybe people don't go to crowded places as much or maybe they don't fly or maybe they don't -- who knows how that -- then there's the impact where you're really worried about some end of day scenario, which there is no reason to think of. there is a defensive -- what is it 1-10,000 something like that could happen? there are black swans we need to be aware of. >> chance of being attacked with a hatchet on the subway yesterday were greater than the chances of getting ebola. >> that is true. as far as the numbers we've seen today, procter and gamble. that was significant. are they going down 50% in the number of products they have? i don't know if you saw that interview, but it made sense to me why they would do that? >> yeah. getting out of the business

duracell they bought. i think there's a lot of cats and dogs brands. they should be concentrated on a few billion dollar brands. it's like disney. disney when they recognize we've got these billion dollar franchises. let's keep making movies. let's stop making these movies that bomb. i feel like proctor has products that are bombing. you are not allowed to take them out of existence. i think they really gotten religion, especially after unilever had a poor number yesterday. proctor has to get its brands in a row and put the money behind the successful brands. stop trying to beat everything. kimberly-clark realized they can't beat everything. they got out of a lot of businesses. proctor has to follow that model. mr. faulk got that right. >> i know that guy. he comes on. >> yes. >> what other numbers stood out today? >> the bengal number against the

ravens. he is a second chance guy. >> i'm a little bit -- i've got a few years on him. he is still ready to bounce back from some of the recent things. i am not. i tried for a long time. i am still open to suggestions. we both like dallas, right? >> dalton and duracell. >> i'm wondering about marvin lewis at this point whether he gets the fire in the belly. >> you do have to wonder. i thing ravens take that division. it's a weak division. afc north. >> there was a game on last night. i didn't know much about it. i didn't watch. >> i watched the whole thing. i feel for anyone who plays peyton. when the world series numbers came out, joe, and i saw those numbers, it's getting beaten by reruns of "how i met somebody,"

it is incredible. it's just devastating. i had martin franklin on last night from jarden. gloves aren't selling. no one wants a glove. we always had a glove when we went to the stadium. >> games have gotten longer, less runs being scored. i don't know what to do about that. >> give me world cup at this point. women's gymnastics. >> live sports is where it's at, but pick your sport. hockey. i'm watching hockey now. regular season games. >> are you? fliers/pittsburgh they sang "o canada" and everybody cried. >> watching that guy. why was i -- you know, all our guys we lost over the years. for some reason that young canadian guy. >> every inch of that article. absolutely. so right. >> i know. >> have a great weekend. >> you, too. up next, a look at what the week that was. opportunities aren't always obvious.

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welcome back to "squawk box." another wild week in the market. >> people were doing very well. and will continue to do well. i don't personally see any need to not pure tail our purchases at the end of our next meeting. >> i do not believe we are going to delay the exit from qe. nor do i believe we are going to see qe-4 any time soon. what we will see is low rates for longer. it's a disruptive company. you talk about media, television, over the top, content, the one company that always comes up is netflix. when you look at what they are doing, very little content is being created in the united states. i think it's going to extend there nationally without someone talking to netflix to see if they are interested in investing in that content first. >> no question the recovery is going to be slow. if you look at our sales history

over my career, almost 40 years at caterpillar, most recoveries come out of the blocks pretty fast. this one is probably going to be a lot slower. in a way, it's probably good for caterpillar and maybe good for the world arguably. >> those are just some of the comments we heard this week. you have to admit, this was a big week for earnings. we've seen quite a number of the s&p. this is the heaviest week for s&p earnings that come out. this gives us a good idea where we stand. all in even though there were high fliers that crashed and burned. all in, a fairly decent earnings. >> good earnings. that accounts for the big move. one of the best weeks we had in a while. even when talking to people today, i said let's just talk, just because we don't know. we don't know about these unknowns. we don't know about ebola. we cannot help but reference it from time to time. it would be something even if there were a slight transmission. on the margin could cause people

to not spend, could cause a slowdown. >> what do you account for what happened two weeks ago? >> that had a favorable resolution for the markets. hopefully happens again this time. >> oh, yes. >> and for everybody involved. the doctor and his loved ones and everyone else. >> we'll be here monday. join us. "squawk on the street" is next. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber back at the new york stock exchange. once again, we are watching the premarket to judge investors' reaction to that new case of ebola, this time in new york city. a lot of earnings to get to. ten-year yields down 2.24. we'll get new home sales in about an hour. gas prices at a five-year low of $3.07 a gallon around the country. r